Financial ETFs and funds indexed to emerging markets were among the biggest winners on a day of big winners. It’s a comeback day for a beaten down sector, the Select Financial Sector SPDRs, XLF, closed up almost 10%.
Emerging markets ETFs rebounded toward the end of Thursday’s trading. The India Fund, IFN rallied over 6% despite early morning selling.
Developing nations ETFs such as the iShares FTSE/Xinhua 25 Index fund, FXI, and the Templeton Russia Fund, TRF, were down most significantly as U.S. market troubles weighed heavily on international investors.
The best performers among ETFs today were those concentrated on Emerging Markets and financial stocks beat down from Monday’s steep sell-off. Among these were the iShares hong Kong Index ETF, EWH, which was up over 3%.
The bankruptcy announcement from Lehman Brothers and the acquisition of Merrill Lynch by Bank of America has brought tremendous volatility to leveraged funds with exposure to the financial sector.
Emerging markets, basic materials and energy shares were on the rebound on Friday. Among them was the iShares Brazil Index fund, EWZ, up 5%.
Moving farther and farther below their 200-day moving averages, ETFs with commodities exposure to gold and crude oil are entering their sixth or seventh consecutive down day.
After days of declines, emerging markets related exchange-traded funds are back in the green – though still very stretched below their 200-day moving averages. Monday’s 7 ETFs includes the iShares Russell 2000 Trust ETF, IWM.
Technology-based ETFs are retracing from their overbought conditions last week, falling over 2% on the day.
The only thing more remarkable than the rout in emerging markets on Tuesday was the drop in exchange-traded funds related to oil and oil service stocks.